October 4, 2012
Falling U.S. birth rates are “bad news for the future of the country,” wrote Time magazine today, adding, “the same thing happened during the stagnation of the 1970s.” A number of these stories yesterday blamed the economy. At the same time, Mood Riff wrote, “it’s [NOT] the economy, stupid,” it’s the social mood reflected in the stock market. That was in regard to presidential reelections, but the same applies to society’s ultimate expression of optimism: collective decisions to have children. It’s no accident that the number of U.S. births peaked in 2007. I combined the Dow and the Case Shiller Home Price Index and plotted the resulting composite, which also scored its all-time high in 2007. The simplest explanation is that a positive social mood trend increases stock prices, housing prices and baby-making. (Click here to read Prechter’s 1999 study, “Stocks & Sex.”)
If you look closely, you can see patterns in social mood that help you predict social trends. Learn more with the Socionomics Premier Membership.